Tsunami Aid heavily taxed in Sri Lanka
25 Mahindra Jeeps made in India landed up in Sri Lanka as aid from British relief agency, Oxfam. They got stuck in Colombo port for nearly a month as the Customs demanded a duty of 300% on the imports. When Oxfam officials tried to reason with the government, the Ministry of Finance offered three options: pay the duty, re-export the vehicles or hand them over to a ministry of their choice. So Oxfam had no choice but to pay up not only the duty but demurrage of 5000 dollars per day – all for bringing in aid for the tsunami victims. Should the Government get a cut even in aid? When people watched those scenes of destruction and suffering on television they were moved to help the victims -- not fill the government's coffers – a donor remarked.
But wait, the Government can explain.
• The exemption was withdrawn as the Government was worried that it was being abused to bring in non-essential items.
• It was in order to promote local procurement and prevent market distortions
Meanwhile, aid workers say that reconstruction is being slowed to a crawl by bureaucracy, corruption, greed and inefficiency.